Airbnb: What changes from the new year – How owners and renters will be taxed

A new landscape is taking shape in short-term rentals (type Airbnb) from the New Year. The new regime for short-term rentals foresees a residence tax on 170,000 properties, VAT on 7,440 natural persons who will be forced to open books and stricter fines.

Thus, those who rent more properties through Airbnb-type platforms will be obliged to open books from the new year, while at the same time their tenants will be obliged to they also pay a residence fee.

The owners properties type Airbnb who will not be registered in the relevant register that has been created will be “harshly” imposed fines.

The Airbnb Act

According to the new law:

• Extends to short-term leases the accommodation fee for non-residents, which is 0.5% of the revenue, in favor of the local government. The transient fee is collected through a special platform, by all those active in the sector, regardless of the number of properties
• Natural persons who have three or more properties on short-term lease are required to start a business activity (with corresponding insurance contributions, business tax and VAT from the first property)
• The accommodation tax which is currently imposed on hotels and rooms for rent is abolished and replaced by the “resilience fee to the climate crisis” which will additionally burden short-term rentals with 1.5 euros per day (under conditions it will reach 10 euros). The climate resilience fee is imposed on all short-term leases, i.e. also in cases where the lessor owns one or two properties

The fee is imposed per daily use and per room or apartment, during the months March to October, as follows: in properties available through short-term rental, 1.50 euros. If the properties available through short-term rental are detached houses over eighty 80 m2, a durability fee of 10 euros is imposed.

During the months November to February, the fee is set at 0.50 euros. If the Airbnb -type properties available through short-term rental are detached houses over eighty 80 sq.m., a durability fee of Euro is imposed.

The fines

• The fines for non-registration in the Short-term Rental Property Register are being tightened. The new fine is set, per tax year, at 50% of the gross income of the last tax year and at a minimum of 5,000 euros. Today, the fine imposed in case of non-registration in the Short-term Rental Real Estate Register is horizontal, amounts to 5,000 euros and is imposed on the manager, whether he is the owner or usufructuary or a third party.
• There is a limit of 60 days on the duration of the lease in order to be counted as short term. It is clarified that the limit of 60 days does not concern the duration of the leases within the year but the duration of each lease separately. Thus, for example, it will be allowed to rent a property for 100 or 150 days during the year provided that each individual rental does not exceed 60 days. The new definition of short-term rental is formulated as follows: “Short-term rental is defined as the rental or subletting of a property for a specific period of time, less than sixty (60) days, and as long as no other services are provided except accommodation and the provision of bed linen”.

In the event that all of the apartments in an apartment building or residential complex are available for short-term rental, it will be considered tourist accommodation and should have the corresponding license.